Changes at Vanguard

[snoblind]

A couple of months back I noticed a Federal Market Money Account being added to my brokerage accounts at Vanguard.  It is the new settlement account.  In what appears to have been simply a bookkeeping entry the shares I had in the primary money account (the old settlement Account) were sold and then bought again.  When an investment is sold funds now go to the new account.  If I wanted to buy something today I would have to sell shares of the prime money market and have it transferred to the federal MM account in order to do so.

The primary differences in the 2 money market accounts is the federal account can only invest in federal securities and is paying half of the old prime money market fund interest rate.

I know we have several money managers on the board.  Is this now a requirement across the board in all brokerage accounts in America?  I have a regular brokerage account, as well as IRA and Roth IRA.  Does it apply to 401K's,  hedge funds?

Ramifications?  Issues?  Any other thoughts? 

[BigBrandonAllenFan]

I would be the first to admit if I didn't have a clue.

I don't have a clue.

[snoblind]

http://www.wsj.com/articles/its-called-financial-repression-and-governments-around-the-world-are-doing-it-1470085522